Course : International Business

Effective Period : February 2017

Global Management of Human Resource

Chapter 20

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 Class Discussion

Case:
Globalizing Your Career

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 Human Resource Management

• It refers to activities that staff the MNE

HRM is more difficult for the MNE that its domestic

counterpart due to
• Environmental differences
• Strategic contingencies
• Organization challenges

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 Strategizing HRM

• HRM policies that support the MNE’s strategy generate

high productivity and competitive advantage.

MNEs use expatriates for various reasons, including

• Filling a skills gap in the local market,
• Transferring competencies to coordinate activities,
• Executive development.

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 Trends in Expatriate
Assignments
• The Young, Old, and Restless
• Rising role of women
• Growing scope of third-country nationals
• Reverse expatriate

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 Staffing Frameworks in the
MNE
1. The Ethnocentric Framework
• It fills key management positions with home-country
nationals.
• Unless checked, the ethnocentric outlook can misinterpret
local innovations.

2. The Polycentric Framework

• It uses host-country nationals to manage local subsidiaries.
• The polycentric staffing framework calls upon
headquarters to unite the often loosely-coupled
subsidiaries.
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 3. The Geocentric Framework
• It posts the most-qualified executives, regardless of
nationality, to expatriates slots.
• Economic factors, decision-making routines, and legal
contingencies complicate implementing the geocentric
framework.

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 Expatriate Selection

• Technical competence
• Adaptiveness
• Self-maintenance
• Empathy
• Tolerance
• Versalitily

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 Types of Compensation
Plans of Expatriates
• Home-based method
• Headquarters-based method
• Host-based method

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 Key Aspects of Expatriate
Compensation
• Base salary
• Foreign service premium
• Tax differentials
• Fringe benefits
• Allowance (cost-of-living, housing, spouse, hardship)

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 Repatriating Expatriates

• Returning home from a foreign assignment can be

professionally rewarding. It is also fraught with
difficulties.
• Repatriation tends to cause work, financial, and social
adjustment difficulties.

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 Expatriate Failure

• The cost of failure

• Exceptions and anomalies
• The wildcard

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 Reference
• Daniels, John. 2019. International business :
environments and operations. Pearson. United Kingdom
p589-621

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